1. Budget Workshop February 12, 2016

2. Mission Statement The Budget Office plans and coordinates budget activities, produces the annual budget, various statistical data, analyses and reports to District-wide offices and external agencies to empower management to effectively direct its human and financial resources.

3. 2015-16 Revenues by Source

4. 2015-16 Expenditures by Function

5. Important Dates October 21Budget Forms 1 and 2 are emailed to Budget Heads February 1Budget development instructions are posted on the Budget Office’s web site ___________ Date budgets are due to your respective (fill in date) executive level’s office March 4Budgets are due to the Budget Office

6. Budget Office Services Budget Office Services Prepare the District’s Annual Operating Budget (Institutional Accounts and Self-Supporting Programs). Coordinate the Adoption of the Tax Rate with external agencies. Perform additional requirements when a tax rate increase is proposed and adopted.

7. Budget Office Services (cont’d.) Budget Office Services (cont’d.) Prepare state mandated documents/reports such as the Budget Book, Legislative Appropriations Requests (LAR) and the Report of Fundable Operating Expenses (RFOE). Conduct annual Budget Workshops, present semi-annually at Effective Management Series Training and other presentations.

8. Budget Office Services (cont’d.) Budget Office Services (cont’d.) Guide Budget Heads in preparing their budgets. Assist in resolving budget issues. Monitor expenses through NSF and monthly reports. Review Personnel Requisition information and verify funding.

9. Budget Office Services (cont’d.) Budget Office Services (cont’d.) Assess expenses as compared to budget. Prepare various analyses and reports. Report monthly salary savings. Process budget related Banner forms.

11. Budget Development Calendar Highlights Budget Development Calendar Highlights Jan./Feb. Prepare for and conduct Budget Workshops MarchBudgets are due to the Budget Office March/AprilBudget Office reviews budget requests April/MayBudget Meetings with President and VP’s May/June/JulyBoard meetings/workshops/presentations Budget development process

12. Budget Development Calendar Highlights (cont’d.) Budget Development Calendar Highlights (cont’d.) July or Aug.Board adopts next year’s budget Aug. or Sept.Board meets to adopt tax rate Sept.New fiscal year begins Oct.Budget Forms 1 & 2 are sent to Budget Heads Nov./Dec.Budget Book is finalized and distributed

13. Banner Codes Banner Codes Executive Level – represents the area: Instruction, Student Services, Finance, etc. Fund - describes the type of resources: 11000 - Institutional Accounts 12000 - Self-Supporting Programs 13000 - Physical Plant

14. Banner Codes (cont’d.) Banner Codes (cont’d.) Organization - represents department, program or discipline: Ex: Police Department, Language Institute Program, English VV Account - describes the object of expenditure: Salary Pools, Supplies Pool, Travel Pool, Equipment Pool, etc. Example: Fund Organization Account 11000 61001 71100 (Institutional) (Police Dept.) (Supplies Pool)

15. Account Numbers – Instructor/Lecturer Account Numbers – Instructor/Lecturer The account number is what drives where your expenses go, so please use the correct one.  Instructor Part-Time (610xx) - consists of 17 different account numbers  Instructor Full-Time (611xx) - consists of 6 different account numbers  Lecturer: 61181 – Fall, FT Funded 61182 – Spring, FT Funded 61183 – Fall, FT Temp Unfunded 61184 – Spring, FT Temp Unfunded

16. 2015-16 Budget Allocations

17. Budget Development Guidelines 2016-17 Rollover of 2015-16 Budget Budget Development Guidelines 2016-17 Rollover of 2015-16 Budget Executive areas are required to remain within their total current budget. New orgs may be created and other orgs closed to allow for reallocation of funds. Reallocations are permitted within executive areas among orgs, accounts or budgetary pools. Full-time salaries are not subject to reallocation unless specifically approved by the President. Reallocations

18. Budget Development Guidelines 2016-17 Rollover of 2015-16 Budget Budget Development Guidelines 2016-17 Rollover of 2015-16 Budget A new full-time position created from other funding sources must be approved by the President. Excess in Overhead budgets can only be reallocated to other Overhead budgets unless approved by the President. Funds must be cross referenced from where they come from to where they went. Reallocations (cont’d.)

19. Budget Development Guidelines 2016-17 Rollover of 2015-16 Budget Budget Development Guidelines 2016-17 Rollover of 2015-16 Budget Positions vacated during the fiscal year are lowered to entry level. Vacant positions are budgeted in the recruitment pool of the respective Vice President. Only the entry level value of a vacated position can be reallocated. Savings remain in the District unless authorized by the President. Vacant Positions

20. Budget Development Guidelines 2016-17 Rollover of 2015-16 Budget Budget Development Guidelines 2016-17 Rollover of 2015-16 Budget Travel budgets are “pooled.” There is no distinction between in-town, out-of-town or foreign. Actual expenses incurred during the year will be charged to the corresponding travel accounts. Local travel expenses include reimbursement for mileage, conference registrations and parking expenses. In-town mileage reimbursement is currently 50.5 cents per mile. Travel

21. Budget Development Guidelines 2016-17 Rollover of 2015-16 Budget Budget Development Guidelines 2016-17 Rollover of 2015-16 Budget An item less than $5,000 should be budgeted in the supplies pool account 71100. Supply budgets are “pooled.” Actual expenses incurred during the year will be charged to the corresponding supply accounts. Supplies

22. Budget Development Guidelines 2016-17 Rollover of 2015-16 Budget Budget Development Guidelines 2016-17 Rollover of 2015-16 Budget Capitalization policy defines equipment as any single item with a unit cost of $5,000 or more. Equipment is expected to have a useful life of at least one year and is not a consumable product. The $5,000 minimum does not apply to library books. Equipment

23. Budget Development Guidelines 2016-17 Rollover of 2015-16 Budget Budget Development Guidelines 2016-17 Rollover of 2015-16 Budget Exceptions to the $5,000 threshold are items such as printers, fax machines, scanners, etc. For a detailed list, contact Property Management Control. These items should be classified as fixed assets regardless of the cost. Equipment purchases must be justified to the appropriate Vice President. Equipment (cont’d.)

24. Budget Development Guidelines 2016-17 Rollover of 2015-16 Budget Budget Development Guidelines 2016-17 Rollover of 2015-16 Budget To determine the eligibility to create a self-supporting program budget, refer to the Guidelines for Self- Supporting Programs available on our website. Self-supporting programs should have a realistic revenue amount. These programs should generate sufficient revenues to fully offset their annual expenses. All salaries positions assigned to the programs must be budgeted in these orgs as well as the associated benefits for these salaries. Self-Supporting Programs Budget

25. Budget Development Guidelines 2016-17 Rollover of 2015-16 Budget Budget Development Guidelines 2016-17 Rollover of 2015-16 Budget The same planning guidelines apply to these programs as institutional budgets. Self-supporting programs are independent and allocations between funds is not allowed. An overhead recovery rate of 15% needs to be included based on the actual revenue generated. Self-Supporting Programs Budget (cont’d.)

26. Budget Development Guidelines 2016-17 Rollover of 2015-16 Budget Budget Development Guidelines 2016-17 Rollover of 2015-16 Budget Grant accounts are budgeted by line item not “pooled”. All requests for Banner access related to grant funds and orgs are completed by the Grants Management Office. For more information regarding grants, please contact them at 831-4468. Grants

27. Budget Monitoring Tips Budget Monitoring Tips Budget Heads should review the Budget Status by Org Mgr, Labor and Org Detail Activity reports sent from General Accounting by e-mail after closing. Check the labor report to confirm that the employees listed are assigned to your department. Report any issues on monthly reports as they occur. Expenditures are handled by General Accounting. Budgets are addressed by the Budget Office.

28. Budget Monitoring Tips (cont’d.) Budget Monitoring Tips (cont’d.) Follow-up by monitoring your budget and expenditure reports to verify the corrections were made. Report any change in Budget Head or personnel timely by submitting the appropriate forms, e.g., Personnel Action Record, Budget Office Banner Maintenance form, etc. As reports are received each month, post the current month’s expenditures by account using the Budget Tracking Worksheet as a tracking tool.

29. Budget Tracking Worksheet  Employee’s individual salaries can be posted and monitored monthly. For example, if there are no personnel transfers, retirements, terminations, etc., the salaries should be consistent each month.  The worksheet may also be useful in tracking spending patterns which may help to plan your budget for the next fiscal year.

38. Budget Development Steps Review Budget Form 1 (Expenditure Detail) and Budget Form 2 (Salary Detail). Note any changes in red ink, initial and date. If there are no budget changes, initial and date to acknowledge that the forms were reviewed and indicate “no changes.” Cross reference funds from where they come from to where they went. BudgetHeads: Budget Heads:

39. Budget Development Steps (cont’d.) Prepare a Banner Fund/Organization/Account Maintenance Form to set up a new organization number or self- supporting program. (Contact General Accounting for assistance). Attach a completed Budget Form 1 and 2. (Blank forms are accessible thru our website). Submit the original authorized form(s) to the Budget Office. New Fund or Org

40. When Creating Two Orgs From One Submit a Budget Office Banner Maintenance Form to our office to update the approval queues. A Personnel Action Record (PAR) needs to be submitted to Human Resources to reflect the changes in Banner. Additional Steps

52. Non-Sufficient Funds (NSF) Flags The purpose of Non-Sufficient Funds (NSF) Flags is to prevent deficit spending when creating requisitions in the Banner System. Prior to starting a requisition, access the Budget Availability Status Form (FGIBAVL) in Banner to check your balance. If the amount requested exceeds your budget pool balance or if there is no budget pool, you have insufficient funds.

53. Non-Sufficient Funds Flags (contd.) If the requisition is submitted for approval, the Budget Head will see a “Y” in the NSF box on the approval form FOAUAPP when the NSF condition exists. The Budget Head cannot override the NSF flag. The requisition should not be approved. If the Budget Head approves the requisition without funds, the Purchasing Department will approve it regardless of the availability of funds; however, it will go to the NSF Queue. The Budget Office has access to override the NSF flag with the appropriate approvals.

54. Non-Sufficient Funds Flags (contd.) Institutional accounts can be overridden if the appropriate Vice President explains the reason for the deficit. Self-supporting accounts can be overridden if sufficient revenue becomes available above the budgeted amount to cover the expenditure. For further assistance, please contact your Accountant in the General Accounting Dept. Any NSF requisition(s) pending needs to be resolved before the end of the month in which it is submitted or it will be disapproved and returned to the requestor.

55. Non-Sufficient Funds Flags (contd.) The requisition has to be resubmitted by the requestor with the current date and ensure that there are sufficient funds before resubmitting it; otherwise, the requisition will go to NSF again. If the Budget Office overrides the NSF flag, that line item will become negative. The funding issue can be resolved through reallocation from another account or another org. A Budget Transfer should be submitted to the Budget Office for processing before initiating the requisition.

58. Budget Office Banner Maintenance Form The purpose of this form is to add or delete access to Banner funds and orgs. Access allows you to process purchase requisitions and/or monitor budgets and expenditures. Submit a form when there is a change in Budget Head, transfer, termination or retirement within your department. All requests for Banner access related to grant funds and orgs are completed by the Grants Management Office.

60. Budget Transfer Form The purpose of this form is to transfer “budgets” between orgs or accounts. Budget transfers are not allowed between different funds, e.g., 11000 (Institutional Fund) to 9xxxx (Plant Fund). Review the Banner org and account’s available balance in FGIBAVL to confirm there are sufficient funds before submitting it. Budget transfers initiated during current fiscal year are only temporary so continued funding must be addressed either thru reallocation or new request processes. Transfers that are deemed to be permanent need to be reflected on next year’s Budget Form 1 & 2.

65. Questions? Questions?